Currency: Rupee closes flat against dollar

KARACHI: The Pakistani rupee closed almost flat at 94.08/14 to the dollar, compared to Wednesday’s record low of 94.10/20. The rupee has been under sustained pressure in recent weeks due to increased import payments, especially for oil. Analysts also cite concerns over current account deficits, IMF loan repayments and recent proposed cuts in US aid to Pakistan by 56% for fiscal 2013 as reasons for the devaluation. The rupee had earlier been supported by significantly higher remittances from overseas Pakistanis this year. Overnight rates in the money market closed at 11.90%, the same level as Wednesday.

 

Published in The Express Tribune, June 8^th, 2012.